27 of 60Price$1.901.80Supply(Private + Public Costs)Supply(Private Costs1.701.601.501.35D3538 4258QuantityThis graph represents the alcohol industry. The socially optimal price and quantity are○ $1.35 and 58 units, respectively.$1.60 and 42 units, respectively.O $1.90 and 38 units, respectively.$1.80 and 35 units, respectively.

The graph includes a line labeled "Supply (Private Costs)" which represents the true production…

Answered: 27 of 60 Price $1.90 1.80 Supply…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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4 This is a graph reprinted from Section 12.1 the Economics of Pollution. Please explain the graph with particular attention paid to why there are two supply curves. How can a government use this graph to establish pollution controls?
Mr permise states I do not understand why anyone would suggest the use of taxes or regulations in pollution problems. Taxes are unfair and regulations are costly and inefficient. The best approach is to trust the market. Firms will control their emissons because it is cost effective for them to do so. The only policy they may need to applied is the use of market permits. Thismarket would function completely and permit prices would clearly represent all revlevant costs Discuss this statement
Carbon dioxide emissions have been linked to increased air pollution. Suppose that, to reduce carbon dioxide emissions, the government charges factories $100 for every ton of carbon dioxide they emit. This is an example of: O Effluent taxation O Emissions trading O Command-and-control policy (regulation) Which of the following is seen as one of the growing pains of emissions trading? O Hot spot problem Tragedy of the commons O Transaction costs
4. Suppose the supply curve of portable radio rentals in Golden Gate Park is given by P= 5+ 0.1Q and the demand curve is by P = 20 -0.2Q. a. If each portable radio imposes $3 per day in noise costs on others, by how much will the market equilibrium quantity exceed the socially optimal number of rentals? b. How would the imposition of a $3 per unit tax affect the efficiency in this market?
45 40 35 30 25 20 P ($) Social cost Supply 15 10 Demand 5 0 0 10 20 30 40 50 60 70 80 90 100 wanted to tax or subsidize this good to achieve the Refer to the figure above. If the government socially-optimal level of output, it would Select one: O a introduce a subsidy of $10 per unit. O b. impose a tax of $10 per unit. Oo impose a tax of $15 per unit. Od introduce a subsidy of $15 per unit. 8
Nimrah has a pet parrot that gives her a benefit (expressed in dollars) of $200. The parrot's squawking imposed a negative externality on Haya of $100. Nimrah has the right to have pets, however noisy, in the house. Assume they can bargain costlessly and enforce any agreement they come up with. Which solution below increases total surplus? O Haya pays Nimrah $100 and Nimrah finds another home for the parrot. O Nimrah keeps the parrot and pays Haya $200. O Haya pays Nimrah $200 and Nimrah finds another home for the parrot. O Nimrah keeps the parrot and pays Haya $100. O It is not possible to increase total surplus with payments.
Which are the two key ’problems’ encountered in aggregating on the consumer side, and why it not occurs on the producer side ? Pls short answer in 15-20 Sentences
None
Question 1 Price $1.90 1.80 1.70- 1.60 1.50 1.35 35 38 42 Supply (Private+ Public Costs) 58 Supply (Private Costs) Quantity Refer to the figure above. This graph represents the tobacco industry. The socially optimal price and quantity are O $1.90 and 38 units, respectively. O $1.80 and 35 units, respectively. O $1.60 and 42 units, respectively. O $1.35 and 58 units, respectively.

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